WINNIPEG, July 25, 2019 /CNW/ - Lakeview Hotel Investment
Corp ("LHIC") announced today that the previously announced
meetings of the holders of Series C Redeemable Subordinated
Debentures (the "Series C Debentures") and the holders of
Series D Redeemable Subordinated Debentures (the "Series D
Debentures", and together with the Series C Debentures, the
"Debentures") was held today.
LHIC is pleased to announce that the holders of the Series C
Debentures have approved the resolution (the "Series C
Resolution") which was placed in front of them at the meeting
as more specifically set out in the Management Information Circular
dated June 24, 2019, which was
previously filed on SEDAR. The Series C Resolution passed
with 94.55% of the holders of Series C Debentures present in
person or represented by proxy at the meeting voting in favour. The
Series C Resolution authorizes LHIC to make certain amendments to
the trust indenture governing the Series C Debentures as set out in
the aforementioned Management Information Circular and as
summarized below:
- Extending the maturity date of the Series C Debentures from
August 22, 2019 to August 31, 2022;
- Amending the restrictive covenants in Section 6.04(b) of the
Series C Trust Indenture by allowing the Corporation to pay fees,
including deferred fees, to Lakeview Management Inc. incurred in
the normal course of business using funds generated through the
Corporation's operations provided that the Corporation will not pay
fees to Lakeview Management Inc. out of proceeds received from the
sale or refinance of any of the Corporation's assets, unless all
amounts owing pursuant to the Series C Debentures and the Series D
Debentures have been paid.
- Including two additional covenants of the Corporation:
-
- The first being a new Section 6.18 requiring that the
Corporation refinance its outstanding indebtedness owing to the
current holder of Senior Security (as defined in the Series C Trust
Indenture) by December 31, 2019
- The second being a new Section 6.19 requiring that the
Corporation will, prior to the Maturity Date, make commercially
reasonable best efforts to pay all amounts owing pursuant to the
Series C Debentures and pursuant to the Series D Debentures as soon
as possible, which the Corporation acknowledges and agrees may
include raising additional funds in the public market, refinancing
the Series C Debentures with a new lender, and/or selling some or
all of its assets.
In order to effect the amendments to the Series C Debentures,
LHIC will be required to enter into a supplemental trust indenture
with the trustee for the Series C Debentures, BNY Trust Company of
Cnada. The amendments to the Series C Debentures will be effective
on or about August 1, 2019.
There is currently $18,326,000
principal amount of Series C Debentures issued and outstanding.
Each Series C Debenture has a face value of $1,000.00. The Series C Debentures are listed on
the TSX Venture Exchange under the trading symbol "LHR.DB.C".
LHIC is further pleased to announce that the holders of the
Series D Debentures have approved the resolution (the "Series D
Resolution") which was placed in front of them at the meeting
as more specifically set out in the Management Information Circular
dated June 24, 2019, which was
previously filed on SEDAR. The Series D Resolution passed with
96.80% of the holders of Series D Debentures present in person or
represented by proxy at the meeting voting in favour. The Series D
Resolution authorizes LHIC to make certain amendments to the trust
indenture governing the Series D Debentures as set out in the
aforementioned Management Information Circular and as summarized
below:
- Extending the maturity date of the Series D
Debentures from August 22, 2019 to
August 31, 2022;
- Amending the restrictive covenants in Section 6.04(b) of the
Series D Trust Indenture by allowing the Corporation to pay fees,
including deferred fees, to Lakeview Management Inc. incurred in
the normal course of business using funds generated through the
Corporation's operations provided that the Corporation will not pay
fees to Lakeview Management Inc. out of proceeds received from the
sale or refinance of any of the Corporation's assets, unless all
amounts owing pursuant to the Series C Debentures and the Series D
Debentures have been paid.
- Including two additional covenants of the Corporation:
-
- The first being a new Section 6.18 requiring that the
Corporation refinance its outstanding indebtedness owing to the
current holder of Senior Security (as defined in the Series D Trust
Indenture) by December 31, 2019
- The second being a new Section 6.19 requiring that the
Corporation will, prior to the Maturity Date, make commercially
reasonable best efforts to pay all amounts owing pursuant to the
Series C Debentures and pursuant to the Series D Debentures as soon
as possible, which the Corporation acknowledges and agrees may
include raising additional funds in the public market, refinancing
the Series D Debentures with a new lender, and/or selling some or
all of its assets.
In order to effect the amendments to the Series D Debentures,
LHIC will be required to enter into a supplemental trust indenture
with the trustee for the Series D Debentures, BNY Trust Company of
Canada. The amendments to the
Series D Debentures will be effective on or about August 1, 2019.
There is $10,160,000 principal
amount of Series D Debentures issued and outstanding. Each Series D
Debenture has a face value of $100.00. The Series D Debentures are listed on
the TSX Venture Exchange under the trading symbol "LHR.DB.D".
Lakeview Hotel Investment Corp. is listed on the TSX Venture
Exchange under the symbol "LHR". Lakeview Hotel Investment Corp.
receives income from ownership, management and licensing of hotel
properties.
The TSX Venture Exchange nor its Regulation Service Provider
(as the term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Lakeview Hotel Investment Corp